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Talented contractors are turning their back on public sector IT projects due to IR35 changes

Hundreds of skilled contractors are reportedly turning their back on public sector IT projects in the wake of recent IR35 reforms, a new study appears to suggest.

According to research published at the beginning of the month, as many as three quarters of public sector departments have lost many of their most talented outsourced staff since the reforms first took effect in April this year.

The research found that 71 per cent of these departments’ IT projects have been either delayed or cancelled as a result of this loss of talent.

In fact, more than half of these projects have lost more than a quarter of their skilled workforce due to the unfavourable IR35 changes, which now see public sector organisations and staffing bodies responsible for determining the IR35 status of the contractors that work for them.

More than 1,500 contractors were quizzed directly, with 27 per cent admitting to leaving public sector jobs as a result of the changes.

A further 63 per cent of contractors currently working for NHS departments – also affected by the reforms – added that they are currently considering a change of career.


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